Response to the following problem:
Describe what is meant by acceptable audit risk. Explain why each of the following statements is true:
a. A CPA firm should attempt to achieve the same audit risk for all audit clients when circumstances are similar.
b. A CPA firm should decrease acceptable audit risk for audit clients when external users rely heavily on the statements.
c. A CPA firm should decrease acceptable audit risk for audit clients when engagement risk is high.
d. Different CPA firms should attempt to achieve reasonably similar audit risks for clients with similar circumstances.